J
oe Thompson's desperate search for a new home after his Pacific Palisades neighborhood was ravaged by wildfire led him to a five-bedroom house in Santa Monica that had been listed for $28,000 a month - more than double the rent from a year ago. The agent wanted three months' rent upfront and already had multiple applications, prompting Thompson to turn down the offer. "We're not going to do that," he said. "We'll just keep looking."
Thompson's family is among thousands searching for housing in Los Angeles, where a dire shortage existed before the disaster. Homeowners and property managers are taking advantage of the situation by jacking up prices on short-term rentals, some violating California law by increasing prices more than 10% during an emergency.
State authorities have asked residents to report gouging to the Attorney General's Office, but investigations aren't public. Assemblymember Jacqui Irwin called it "absolutely unacceptable and illegal" in a news conference Sunday. Researchers say that when natural disasters hit, rents spike as demand surges beyond a city's capacity, burdening those who were renting before.
In some cases, prospective renters are finding themselves on waiting lists or being asked to provide a year's worth of rent upfront. Real estate broker Brock Harris said homeowners who haven't experienced the rental market in decades are getting a "crash course" in the housing shortage. The wildfires have consumed over 40,000 acres and destroyed more than 12,300 structures.
Wildfire victims span various housing situations, including working-class renters, retirees, young couples, and wealthy families. Many are staying with family or friends while searching for long-term housing. Airbnb.org is providing free temporary housing to victims through a local nonprofit group.
The Los Angeles Tenants Union has launched an effort to track reports of rental price gouging, receiving over 450 tips, some describing spikes of more than 10% and a dozen reporting 100% increases or more. Organizer Magdaleno Rosales said landlords are taking advantage of people's desperation and is worried about evictions of working-class tenants.
An NBC News review uncovered numerous examples of rental price gouging, including one listing agent who was named on a dozen rentals with price hikes exceeding the 10% allowed under Gov. Gavin Newsom's emergency declaration. Zillow released a statement saying it had activated internal systems to flag potential violations and would take action if necessary.
Despite allegations of price gouging, there are stories of generosity and empathy. Tannis Mann, who lost her Pacific Palisades house, said she has seen examples of landlords maintaining or lowering prices. For now, many families are struggling to find a new place to live, with some staying in hotels or Airbnb properties until they can secure long-term housing.
